internet sales tax ruling

 

The ruling is in: Wayfair, Amazon, eBay, Etsy and all e-commerce retailers are subject to pay sales tax depending on the state their goods are sold in.

“In this world nothing can be said to be certain, except death and (sales) taxes.” – Benjamin Franklin

The old statute:

  • Your online business was exempt from paying sales tax if you didn’t have a substantial connection with that state (ie your business was physically located there)

What’s changing about it:

What you can do about it?

  • Do not freak out! While the decision overturns the prior statute, that doesn’t mean every state will automatically start charging sales tax. In some cases, they might start charging to business who make over a certain amount and you may not be affected at all
  • Research the platform you’re using to conduct sales across the US that can facilitate the tracking and collection of sales tax within each different jurisdiction
  • Contact tax professionals and/or attorneys in the state(s) you’re doing business in and see if they have insight on how your specific business might be affected

If you are in Colorado and have questions on how your online business might be affected, don’t hesitate to contact me.

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